1996-36575-Resolution No. 96-133 Recorded 10/2/1996RTD
LE COUNSEL
RESOLUTION NO. 96-133,
BEFORE THE BOARD OF COUNTY CONMUSSIONERS FOR DESCHUTES COUNTY,
OREGON ACTING AS THE GOVERNING BODY OF THE SUNRIVER LIBRARY
COUNTY SERVICE DISTRICT
A Resolution Authorizing the Issuance of
General Obligation Bonds to Finance )
Library Service Facilities and to Pay All Costs )
Incidental Thereto. ) w�
WHEREAS, the Board of County Commissioners of Deschutes County, Orion
(the "Board") as the governing body of the Sunriver Library County Service District, Deschutes
County, Oregon (the "District"), submitted to the voters the question of contracting a general
obligation bonded indebtedness in the aggregate sum of $1,145,000 to finance library service
facilities and to pay all costs incidental thereto; and
WHEREAS, the election was duly and legally held on September 17, 1996 and this
Board has canvassed the result thereof and has declared that issuance of bonds in such sum has
been approved by a majority of the qualified voters of the District voting at the election; and
NOW THEREFORE, BE IT RESOLVED by the Board of County Commissioners
for Deschutes County, Oregon, as the governing body of the Sunriver County Library Service
District as follows:
Section 1. Issue.
1.1. For the above purposes, the District shall issue its General Obligation Bonds,
Series 1996 (the 'Bonds"), in the amount of One Nfillion One Hundred Forty-Five Thousand
($1,145,000), to be dated October 1, 1996, to be in denominations of Five Thousand Dollars
($5,000) or integral multiples thereof, to bear interest payable on December 1 and June 1 of each
year until maturity or prior redemption, commencing June 1, 1997, and to mature on June 1 of
each year as follows unless term Bonds are bid pursuant to the Official Notice of Bond Sale:
Date Amount Date Amount
1997 $50,000 2007 $55,000
1998 35,000 2008 60,000
1.999 35,000 2009 60,000
2000 40,000 .2010 65,000
2001• 40,000 2011 65,000
2002 45,000 2012 75,000
2003 45;000 2013 75,000
2004 45,000 2014 80,000
2005 50,000 2015 85,000 K�` ��
2006 50,000 2016 90,000
0„ T 1996
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Section 2. Bond Book -Entry -Form.
2.1. The Bonds shall be initially issued in book -entry -form, with no Bonds being
made available to the Bondowners. The Finance Director acting on behalf of the Board shall
execute and deliver letters of representations to The Depository Trust Company, New York, New
York ("DTC") for the Bonds, in form and substance satisfactory to DTC. So long as the Bonds
are in book -entry form:
2.1.1. Ownership of the Bonds shall be recorded through entries on the
books of banks and broker-dealer participants and correspondents that are related to
entries on the DTC system. The Bonds shall be initially issued in the form of a global
bond for each maturity. Each global bond shall be registered in the name of Cede & Co.
as nominee of DTC as the owner of the Bond, and such global bonds shall be lodged with
DTC until early redemption or maturity of the Bond issue.
2.1.2. The Registrar shall remit payment for the maturing principal and
interest on the Bonds to DTC as owner of the Bonds for distribution by the nominee to
the beneficial owners by recorded entry on the books of DTC participants and
correspondents. While the Bonds are in book -entry -form, the Bonds will be available in
denominations of $5,000 or any integral multiple thereof.
2.1.3. "Term Bonds" means the Bond payable at or before their specified
maturity date or dates from mandatory sinking fund payments established for that purpose
and calculated to retire such bonds on or before their specified maturity date or dates.
2.2. In the event DTC determines not to continue to act as securities depository
for the Bonds, or the District determines that DTC shall no longer so act; then the District will
discontinue maintaining the Bonds in the book -entry -form with DTC.
2.3. Notwithstanding the provisions regarding exchange and transfer of Bonds set
forth in this Resolution, while the Bonds are in book -entry -form they may not be transferred or
exchanged on the registration books maintained by the Paying Agent except:
below,
2.3.1. to any successor depository designated by the District a%provided
2:3:2. to any successor nominee designated by a depository; or
2.3.3.. if the District elects to discontinue maintaining the Bonds in book -
entry -form, the District shall cause the Paying Agent to authenticate and deliver
replacement Bonds in fully registered form in authorized denominations in the names of
the beneficial owners or their nominees; thereafter the provisions set forth herein,
regarding registration, transfer and exchange of Bonds shall apply.
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2.4. Upon the resignation of any institution acting as depository hereunder, or if
the District determines that continuation of any institution in the role of depository is not in the
best interests of the beneficial owners, the District shall attempt to identify another institution
qualified to act as depository hereunder or shall discontinue maintaining the Bonds in book -entry -
form by resolution or ordinance. If the District is unable to identify such successor depository
prior to the effective date of the resignation, the District shall discontinue maintaining the Bonds
in book -entry -form as provided above.
2.5. With respect to Bonds registered in the registration books maintained by the
Paying Agent in the name of the nominee of DTC, the District and the Paying Agent shall have no
responsibility or obligation to any participant or correspondent of DTC or to any beneficial owner
on behalf of which such participants or correspondents act as agent for the beneficial owner with
respect to:
2.5.1. the accuracy of the records of DTC, the Nominee or any participant
or correspondent with respect to any beneficial owner's interest in the Bonds;
2.5.2. the delivery to any participant or correspondent or any other person
of any notice with respect to the Bonds, including any notice of prepayment;
2.5.3. the selection by DTC of the beneficial interest in Bonds to be
redeemed prior to maturity; or
2.5.4. the payment to any participant, correspondent, or any other person
other than the registered owner of the Bonds as shown in the registration books
maintained by the Paying Agent, of any amount with respect to principal or interest on the
Bonds.
2.6. So long as the Bonds are in book -entry -form, the Paying Agent will give any
notice of redemption or any other notices required to be given to registered owners of Bonds .only
to DTC or its nominee registered as the registered owner thereof. Any failure of DTC to advise
any of its participants, or of any participant to notify the beneficial owner, of any such notice and
its content or effect will not affect the validity of the redemption of the Bonds called for
redemption or of any other action premised on such notice. Neither the District nor the Paying
Agent is responsible or liable for the failure of DTC or any participant to make any payment or
give any notice to a beneficial owner in respect of the Bonds or any error or delay relating thereto.
2.7. The District shall pay or cause to be paid all principal and interest on the
Bonds only to or upon the order of the owner, as shown in the registration books maintained by
the Paying Agent, or their respective attorneys duly authorized in writing, and all such payments
shall be valid and effective to fully satisfy and discharge the, District's obligation with respect to
payment thereof to the extent of the sum or sums so paid.
2.8. Upon delivery by DTC to the District and to the owner of written notice to
the effect that DTC has determined to substitute a new nominee in place of the nominee, then the
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word "nominee" in this Resolution shall refer to such new nominee of DTC, and upon receipt of
such notice, the District shall promptly deliver a copy thereof to the Paying Agent. DTC shall
tender the Bonds it holds to the Paying Agent for reregistration.
2.9. The provisions of this Section may be modified without the consent of the
beneficial owners in order to conform this Section to the standard practices of DTC for bonds
issued in book -entry -form.
Section 3. Mandatory Redemption.
3.1. The Bonds maturing in two or more consecutive maturities may be
designated as Term Bonds pursuant to the bid submitted by the successful bidder. Such Term.
Bonds, if any, shall be subject to mandatory redemption pursuant to the serial bond schedule
established in the Official Notice of Bond Sale. Amounts paid to redeem bonds by optional
redemption will be applied to reduce the amount of bonds subject to mandatory redemption, if
any, in order of scheduled mandatory redemption.
Section 4. Optional Redemption.
4.1.The Bonds shall be subject to redemption, in whole or in part, at the option of
the District, on June 1, 2006 and on any interest payment date thereafter at par plus accrued
interest to the date of redemption upon prior written notice as hereinafter provided.
4.2. Amounts paid to redeem bonds by optional redemption will be applied to
reduce the amount of bonds subject to mandatory redemption, if any, in order of scheduled
mandatory redemption.
Section S. Notice of Redemption of Bonds (DTC).
5.1. So long as the Bonds are in book -entry form, the Paying Agent shall notify
DTC of any early redemption not less than 30 days prior to the date fixed for redemption, and
shall provide such information in connection therewith as required by a letter of representation
submitted to DTC in connection with the issuance of Bonds.
Section 6. Notice of Redemption (No DTC).
6.1. During any period in which the Bonds are not in book -entry form, unless
waived by any Owner of the Bonds fo be redeemed, official notice of any redemption of bonds
shall be given by the Paying Agent on behalf of the District by mailing a copy of an official
redemption notice by first class mail postage prepaid at least 30 days and not more than 60 days
prior to the date fixed for redemption to the Owner of the Bond or bonds to be redeemed at the
address shown on the bond register or at such other address as is fiu-nished in writing by such
owner to the Paying Agent. The District shall notify the Paying Agent of any intended
redemption not less than 45 days prior to the redemption date. All such official notices of
redemption shall be dated and shall state:
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6.1.1. the redemption date.
6.1.2. the redemption price,
6.1.3. if less than all outstanding Bonds are to be redeemed, the
identification (and, in the case of partial redemption, the respective principal amounts) of
the Bonds to be redeemed,
6.1.4. that on the redemption date the redemption price will become due
and payable upon each such Bond or portion thereof called for redemption, and that
interest thereon shall cease to accrue from and after said date, and
6.1.5. the place where such Bonds are to be surrendered for payment of
the redemption price, which place of payment shall be the principal office of the Paying
Agent.
6.2. Prior to any redemption date, the District shall deposit with the Registrar an
amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds
which are to be redeemed on that date.
6.3. Official notice of redemption having been given as aforesaid, the Bonds or
portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at
the redemption price therein specified, and from and after such date (unless the District shall
default in the payment of the redemption price) such Bonds or portions of bonds shall cease to
bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such
Bonds shall be paid by the Registrar at the redemption price. Installments of interest due on or
prior to the redemption date shall be payable as herein provided for payment of interest. Upon
surrender for any partial redemption of any Bonds, there shall be prepared for the registered
owner a new Bond or Bonds of the same maturity in the amount of the unpaid principal. All
Bonds which have been redeemed shall be canceled and destroyed by the Registrar and shall not
be reissued.
6.4. In addition to the foregoing notice, further notice shall be given by the
Registrar as set out below, but no defect in said fiuther notice nor any failure to give all or any
portion of such further notice shall in any manner defeat the effectiveness of a call for redemption
if notice thereof is given as above prescribed.
6.4.1. Each further notice of redemption given hereunder shall contain the
information required above for an official notice of redemption plus (i) the CUSIP
numbers of all Bonds being redeemed; (ii) the date of issue of the Bonds as originally
issued; (iii) the rate of interest borne by each Bond being redeemed; (iv) the maturity date
of each Bond being redeemed; and (v) any other descriptive information needed to identify
accurately the Bonds being redeemed.
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6.4.2. Each further notice of redemption shall be sent at least 35 days
before the redemption date by registered or certified mail or overnight delivery service to
all registered securities depositories then in the business of holding substantial amounts of
obligations of types comprising the Bonds (such depositories now being Depository Trust
Company of New York, New York, Midwest Securities Trust Company of Chicago,
Illinois, Pacific Securities Depository Trust Company of San Francisco, California and
Philadelphia Depository Trust Company of Philadelphia, Pennsylvania) and to one or more
national information services that disseminate notices of redemption of obligations such as
the Bonds (such as Financial Information, Inc.'s Financial Daily Called Bond Service;
Interactive Data Corporation's Bond Service; Kenny Information Service's Called Bond
Service; Moody's Municipal and Government; and Standard and Poor's Called Bond
Record.)
6.4.3. Each such further notice shall be published one time in The Bond
Buyer of New York, New York or, if such publication is impractical or unlikely to reach a
substantial number of the holders of the Bonds, in some other financial newspaper or
journal which regularly carries notices of redemption of other obligations similar to the
Bonds, such publication to be made at least 30 days prior to the date fixed for redemption.
6.4.4. Upon the payment of the redemption price of Bonds being
redeemed, each check or other transfer of funds issued for such purpose shall bear the
CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the
proceeds of such check or other transfer.
Section 7. Authentication, Registration and Transfer.
7.1. No Bond shall be entitled to any right or benefit under this Resolution unless
it shall have been authenticated by an authorized officer of the Paying Agent. The Paying Agent
shall authenticate all Bonds to be delivered at closing of the Bonds, and shall additionally
authenticate all Bonds properly surrendered for exchange or transfer pursuant to this Resolution.
7.2. The ownership of all Bonds shall be entered in the bond register maintained
by the Paying Agent, and the District and the Paying Agent may treat the person listed as owner
in the bond register as the owner of the Bond for all purposes.
7.3. While the bonds are in book -entry -form, the Paying Agent shall transfer Bond
principal and interest payments in the manner required by DTC.
7.4. If the Bonds cease to be in book -entry -form, the Paying Agent shall mail each
interest payment on the interest payment date ( or the next business day if the payinent date is not
a business day) to the name and address of the Bondowners as they appear on the bond register as
of the fifteenth day of the month preceding an interest payment date (the "Record Date'). If
payment is so mailed, neither the District nor the Paying Agent shall have any further liability to
any party for such payment.
UrHXM
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7.5. Bonds may be exchanged for an equal principal amount of Bonds of the same
maturity which are in different denominations, and Bonds may be transferred to other owners if
the Bondowner submits the following to the Paying Agent:
7.5.1. written instructions for exchange or transfer satisfactory to the
Paying Agent, signed by the Bondowner or attorney in fact and guaranteed or witnessed in
a manner satisfactory to the Paying Agent; and
7.5.2. the Bonds to be exchanged or transferred.
7.6. Bonds shall be considered submitted to the Paying Agent on the date the
Paying Agent actually receives these materials described above.
7.7. The Paying Agent shall not be required to exchange or transfer any Bonds
submitted to it during any period beginning with a Record Date and ending on the next following
payment date; however, such Bonds shall be exchanged or transferred promptly following that
payment date.
7.8. The Paying Agent shall note the date of authentication on each Bond. The
date of authentication shall be the date on which the Bondowner's name is listed on the bond
register.
7.9. The District may alter these provisions regarding registration and transfer by
mailing notification of the altered provisions to all Bondowners. The altered provisions shall take
effect on the date stated in the notice, which shall not be earlier than 45 days after notice is
mailed.
Section 8. Security.
8.1. The full faith and credit of the District are pledged to the successive owners
of each of the Bonds for the punctual payment of such obligations, when due. The District shall
levy annually, as provided by law, a direct ad valorem tax upon all of the taxable property within
the District, without limit as to rate or amount, in sufficient amount, after taking into
consideration discounts taken and delinquencies that may occur in the payment of suc4 taxes and
other monies available for the payment of debt service on the Bonds, to pay the Bonds promptly
as they mature, and the District covenants with the owners of its Bonds to levy such a tax
annually during each year that any of the Bonds, or Bonds issued to refund them, are outstanding.
Section 9. Maintenance of Tax -Exempt Status.
9.1. The District covenants for the benefit of the owners of the Bonds to comply
with all provisions of the Internal Revenue Code of 1986, as amended (the "Code") which are
required for Bond interest to be excluded from gross income for federal income taxation purposes
(except for certain taxes on corporations), unless the District obtains an opinion of nationally
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9MI96
recognized Bond Counsel that such compliance is not required for the interest paid on the Bonds
to be so excluded. The District makes the following specific covenants with respect to the Code:
9.1.1. The District shall not take any action or omit any action, if it would
cause the Bonds to become "arbitrage bonds" under Section 148 of the Code and shall pay
any rebates to the United States which are required by Section 148(f) of the Code.
9.1.2. The District shall operate the facilities financed with the Bonds so
that the Bonds are not "private activity bonds" within the meaning of Section 141 of the
Code.
9.1.3. The District shall comply with all reporting requirements.
9.1.4. The District shall pay any required rebates to the federal
government.
9.1.5. The covenants contained in this section and any covenants in the
closing documents for the Bonds shall constitute contracts with the owners of the Bonds,
and shall be enforceable by them.
Section 10. Qualified Tax -Exempt Obligations.
10.1. The District hereby designates the Bonds as qualified tax-exempt obligations
pursuant to Section 265(b)(3) of the Code. The District does not expect to issue more than
$10,000,000 of tax-exempt obligations during the current calendar year.
Section 11. Rebate Exemption.
11.1. The District has general taxing powers. No portion of the Bond proceeds
will be used to finance property which is used in the trade or business of nongovernments, or is
loaned to nongovernments. None of the Bonds are "private activity bonds" within the meaning of
Section 141 of the Code. At least ninety-five percent of the net proceeds of the Bonds will be
used for public improvements which will be owned and operated by the District. The District
(and all subordinate entities thereof, if any) does not reasonably expect to issue tax-exempt
obligations in calendar year 1.996 which have an aggregate face amount of more than 5,000,000.
Accordingly, under Section 148(f)(4)(c) of the Code, no rebate to the United States is required to
be paid in connection with the Bonds.
Section 12. Defeasance.
12.1. The District may defense the Bonds by setting aside, with a duly appointed
escrow agent, in a special escrow account irrevocably pledged to the payment of the Bonds to be
defeased, cash or direct obligations of the United States in an amount which, in the opinion of a
certified public accountant satisfactory to the escrow agent, without reinvestment, is at least equal
to the principal amount of the Bonds to be defeased, plus interest which will accrue thereon until
'
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maturity or any earlier date for which the issuer has given irrevocable instructions for redemption.
Such Bonds shall be paid hereunder, and shall cease to be entitled to any lien, benefit or security
under this Bond Resolution except the right to receive payment from such special escrow
account; such Bonds shall not for any purpose of this Bond Resolution be deemed outstanding.
Section 13. Advisors.
13.1. Seattle -Northwest Securities Corporation is hereby retained as the District's
financial advisor which may submit a bid to purchase the Bonds and Preston Gates & Ellis is
retained as the District's bond counsel.
Section 14. Sale.
14.1. The Deschutes County Finance Director, acting on behalf of the Board, shall
cause to be published in The Bulletin, Bend, Oregon; the Daily Journal of Commerce, Portland,
Oregon; and The Bond Buyer, New York, New York notices of sale of the Bonds or summaries
thereof in the forms substantially as shown on Exhibit A(1) and A(2) attached hereto and by this
reference incorporated herein, as provided by law. The Bonds shall be sold upon the terms
provided in the Notices of Bond Sale. The Bonds shall be sold upon a determination of the best
bid by the Finance Director in consultation with the District's bond counsel and financial advisor
on the date and at the time and place stated in Exhibit A, unless the Chair or Finance Director
establishes a different date, time, or place.
Adopted this 2nd day of October, 1996.
Board of County Commissioners of Deschutes
County, Oregon, acting=as the governing body of
thf Sunriver Li�ry County,�ervice District
Barry H.
Robert L. Nipper, Commissioner
A
Recording Secretary
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]Exhibit A (1)
Oficial Notice of Bond Sale
$1,x45,000
Sunriver Library County Service District
Deschutes County, Oregon
General Obligation Bonds
Series 1996
NOTICE IS HEREBY GIVEN that sealed bids will be received on behalf of
Sunriver Library County Service District, Deschutes County, Oregon (the "District"), for the
purchase of its General Obligation Bonds, Series 1996 (the "Bonds"), until 10:00 o'clock a.m.
(Pacific Time) on October 17, 1996, at the offices of Preston Gates & Ellis, Lawyers,
3200 U.S. Bancorp Tower, 11 I S.W. Fifth Avenue, Portland, Oregon 97204, at which time they
will be publicly opened and announced,
The bids shall be considered and acted upon by the District within four hours.
ISSUE: The issue shall be in the aggregate principal amount of One Million One
Hundred Forty -Five Thousand ($1,145,000), consisting of registered Bonds in denominations of
Five Thousand Dollars ($5,000) or integral multiples thereof, all dated October 1, 1996. .
INTEREST RATE: The maximum interest rate shall not exceed a true interest
cost of seven percent (70/9) per annum. Interest is payable semiannually on December 1 and
June 1 of each year until maturity or prior redemption, commencing June 1, 1997. Bidders must
specify the interest rate or rates which the Bonds hereby offered for sale shall bear. The bids shall
comply with the following conditions: (1) each interest rate specified in any bid must be a
multiple of 1/8th or 1/20th of one percent (11/6); (2) no Bond shall bear more than one rate of
interest; (3) each Bond shall bear interest from its date to its stated maturity date at the interest
rate specified in the bid; (4) all Bonds maturing at any one time shall bear the same rate of
interest; and (5) no rate of interest may exceed 8%.
Page I - Exhibit A(1) (Official Notice of Bond Sale) 1-=KEJNE,VELLNM&ALni.MC
MATURITIES: The Bonds shall mature on June 1 of each year as follows:
Date
Amount
Date
Amount
1997
$50,000
2007
$55,000
1998
35,000
2008
60,000
1999.
35,000
2009
60,000
2000
40,000
2010
65,000
2001
40,000
2011
65,000
2002
45,000
2012
75,000
2003
45,000
2013
75,000
2004
45,000
2014
80,000
2005
50,000
2015
85,000
2006
50,000
.2016
90,000
OPTIONAL DESIGNATION OF TERM BONDS AND MANDATORY
REDEMPTION: The successful bidder may designate one or more term Bonds, which consist of
two or more consecutive maturities, which mature on the maturity date of the last of the
consecutive maturities in an amount equal to the sum of the consecutive maturities, and which are
subject to mandatory redemption at par and by lot in amounts equal to the consecutive maturities
which were combined into term Bonds.
OPTIONAL REDEMPTION: The Bonds shall be subject to redemption, in whole
or in part, at the option of the District, on June 1, 2006 and on any interest payment date
thereafter at par plus accrued interest to the date of redemption upon prior written notice as
hereinafter provided.
NOTICE OF REDEMPTION: Notice of any call for redemption, unless waived
by the holders of the Bonds to be redeemed, shall be given as required by the Letter of
Representation to The Depository Trust Company or shall be mailed not less than thirty days and
not more than sixty days prior to such call to the registered owners of the Bonds, and otherwise
given as required by the authorizing Bond Resolution and by law, however, any failure to give
notice shall not invalidate the redemption of the Bonds. All Bonds called for redemption. shall
cease to bear interest from the date designated in the notice. 1%
BOOK ENTRY ONLY: The Bonds are to be initially issued in registered, book -
entry form only and all bidders of the Bonds must be participants of The Depository Trust
Company, New York, New York, or affiliated with its participants. The certificates will be on
deposit with The Depository Trust Company. The Depository Trust Company will be responsible
for maintaining a book -entry system for recording the interest of its participants for the transfer of
the interests among its participants. The participants will be responsible for maintaining records
regarding the beneficial ownership interest in the Bonds on behalf of the individual purchasers.
Individual purchases may be made in the principal amount of $5,000, or any multiple thereof
through book entries made on the books and records of The Depository Trust Company and its
participants.
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REGISTRATION: The Bonds will be issued in fully registered form, and may be
exchanged at the expense of the District for similar Bonds of different authorized denominations.
Bonds may not be converted to bearer form.
PAYMENT: Principal and interest are payable, either at maturity or upon earlier
redemption, by check or draft through the principal corporate trust office of the registrar and paying
agent of the District, which is currently First Trust National Association, in Portland, Oregon.
PURPOSE: The Bonds are being issued to refund the District's Bond Anticipation
Notes, Series 1995, and to finance library service facilities and to pay all costs incidental thereto.
The Bonds were authorized at a special election held within the District on September 17, 1996.
SECURITY: The Bonds are general obligations of the District_ The District has
covenanted to levy an ad valorem tax annually which, with other available funds, will be sufficient
to pay Bond principal and interest as they come due.
BOND INSURANCE: Application will be made for qualification of the Bonds for
debt service insurance. If the Bonds qualify for municipal bond insurance, any purchase of such
policy shall be at the sole option and expense of the bidder. Failure of the Bonds to be so insured
or of any such policy to be issued shall not in any manner relieve the successful bidder of his
contractual obligations arising from the acceptance of his proposal for the purchase of the Bonds.
LEGAL OPWON: The approving opinion of Preston Gates & Ellis, Bond
Counsel, of Portland, Oregon, will be provided at no cost to the purchaser, and will be printed on
the Bonds at the expense of the District.
BANK QUALIFIED: The District has designated the Bonds as "qualified tax-exempt
obligations" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
TAX-EXEMPT STATUS: In the opinion of Bond Counsel, under existing law
and conditioned on the District complying with certain covenants relating to the tax-exempt status
of the Bonds, interest on the Bonds is excluded from gross income for federal income tax
purposes (except for certain taxes on corporations). The Bonds are not "private activity bonds"
under Section 141 of the Internal Revenue Code of 1986, as amended (the "Code").
In the opinion of Bond Counsel, the interest on the Bonds is exempt from personal
income taxation by the State of Oregon under present state law.
Bond Counsel expresses no opinion regarding other federal or state tax
consequences arising with respect to the Bonds.
CERTIFICATE OF REOFFERING PRICE: The successful bidder shall provide
the District's financial advisor with the reoffering prices and yields within twenty-four hours after
award of the bid. The reoffering prices and yields so provided will be printed on the cover of the
final official statement. In addition, the successful bidder must provide a certificate, satisfactory
to Bond Counsel, containing information which will permit Bond Counsel to determine the "issue
price" of the series, and verifying the accuracy of the reoffering prices and yields which were
J11tD1kX9I.f NRMs0.LMRESJ1lJf H -DDC
Page 3 - Exhibit A(1) (Official Notice of Bond Sale)
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certified to the District's financial advisor, not later than seven business days prior to the closing.
Failure to provide the reoffering prices and yields, or the certificate satisfactory to Bond Counsel,
may result in cancellation of the sale and forfeiture of the successful bidder's good faith deposit.
BEST BID: The Bonds will be awarded to the responsible bidder whose proposal
will result in the lowest true interest cost to the District. True interest cost will be determined by
doubling the semiannual interest rate necessary to discount the debt service to October 1, 1996,
and the price bid for the Bonds. Each bidder is requested to supply the total interest cost and the
true interest cost that the District will pay upon the issue if the bid is accepted. The purchaser
must pay accrued interest, computed on a 360 -day basis, from the date of the Bonds to the date of
delivery.
FORM OF BID: Bids must be for all Bonds, and for not less than 100% of the par
value thereof, plus accrued interest to the date of delivery. Each bid must be signed and may be
submitted on the optional bid form enclosed in the preliminary official statement. Bids may be
telecopied or delivered to the District in care of its Bond Counsel, Preston Gates & Ellis at
503-248-9085 (fax). Bids which are delivered must be enclosed in a sealed envelope addressed to
the District, which is clearly marked as a proposal for the Bonds. The District requests that any
firm planning to telecopy a bid contact Bond Counsel at least one business day prior to the sale.
Bidders electing to telecopy bids bear all risk of failure of the bid to be received by the District in
a timely manner, and any inaccuracies that result from lack of clarity in the telecopied bid which
the District receives.
GOOD FAITH DEPOSIT - CHECK OR FINANCIAL. -SURETY BOND: Each
bid must be accompanied by a good faith deposit in the amount of Twen!y-Four Thousand Dollars
($24,000.00). The good faith deposit must be in the form of a certified or cashier's check drawn
on a bank doing business in the State of Oregon or a financial surety bond and payable to the
order of the District. The good faith deposit will be held by the District as security against any
loss resulting from the failure of the bidder to comply with the terms of its bid. The good faith
deposit will be forfeited to the District as liquidated damages in case the bidder to whom the
Bonds are awarded withdraws its bid or fails to complete its purchase of the Bonds in accordance
with the terms thereof, including any failure to purchase the Bonds resulting from the inability of
the bidder to secure delivery of an insurance policy submitted as part of its bid for thepurchase of
the Bonds.
If a check is used as good faith deposit, the check must accompany the bid. If a
financial surety bond is used as the good faith deposit, such financial surety bond must be
submitted to the District prior to the opening of the bids. The issuer of the financial surety bond
must be rated in the highest rating category by Moody's Investors Service, Inc., by Standard &
Poor's Corporation, or by Fitch Investors Service, Inc., and must identify the bidder whose good
faith deposit is guaranteed by such financial surety bond. If the Bonds are awarded to a bidder
utilizing a financial surety bond as the good faith deposit, then not later than 2:00 p.m. (Pacific
Time) on October 18, 1996 the successful bidder must send by electronic wire transfer to such
account as the District shall specify, immediately available funds in an amount equal to the good
Page 4 - Exhibit A(1) (Official Notice of Bond Sale) JAWR%SUNRrVVW & S-AvrH1=
faith deposit. If such wire transfer is not received from the successful bidder by 2:00 p.m. on
October 18, 1996 the financial surety bond may be immediately drawn upon by the District to
satisfy the good faith deposit requirement.
The District reserves the right to cash the good faith deposit check of the
successful bidder, or to retain any good faith deposit delivered by electronic wire transfer,
immediately upon receipt thereof by the District. The District shall be entitled to retain for the
sole and exclusive use and benefit of the District all investment earnings derived from the good
faith deposit prior to the delivery of the Bonds, and in no event shall the successful bidder be
entitled to any such investment earnings (whether by means of a credit or otherwise).
Upon delivery of the Bonds, the successful bidder will receive a credit against the
purchase price of the Bonds in an amount equal to the good faith deposit. Checks representing
the good faith deposits of the unsuccessful bidders will be promptly returned by the District.
DELIVERY: Closing will occur in Portland, Oregon. Delivery of the Bonds will
be made at the purchaser's cost to The Depository Trust Company, New York, New York, on or
about October 29, 1996. Payment for the Bonds must be made in funds immediately available.
RIGHT OF REJECTION: The District reserves the right to reject any or all bids,
and to waive any irregularities.
OFFICIAL STATEMENT AND FURTHER INFORMATION: Further
information and a preliminary official statement relating to the Bonds will be provided upon
request to its financial advisor, Seattle -Northwest Securities Corporation, 1000 S.W. Broadway,
Suite 1800, Portland, Oregon 97205, telephone (503) 275-8308, Attention: Cindy Duley.
COMPLIANCE WITH SEC RULES: The District agrees to provide the
successful bidder with up to 150 copies of the official statement in a form "deemed final" by the
District for the Bonds at the expense of the District, and such additional copies as the successful
bidder may request in its bid form at the. expense of the bidder, not later than the seventh business
day following the date on which bids are due. Bidders should expect that the official statements
will not be available prior to the seventh business day following the date on which bids are due,
and should not issue confirmations which request payment prior to that date. The suclessful
bidder must provisie the reoffering yields or prices which will be printed on the cover of the final
official statement to the District's financial advisor within twenty-four hours after bids are opened.
This provision will constitute a contract with the successful bidder upon acceptance of its bid by
the District, in compliance with Section 240.15c2 . 12(b)(3) in Chapter II of Title 17 of the Code
of Federal Regulations.
The District further covenants and agrees to enter into a written agreement or
contract, constituting an undertaking to provide ongoing disclosure about the District, for the
benefit of the Bondholders on or before the date of delivery of the Bonds as required by
Section (b)(5)(i) of Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), which
undertaking shall be a part of the Bond Resolution and in the form as summarized in the
Page 5 - Exhibit A(1) (Official Notice of Bond Sale) ''�R%%RRUVMLLM%PJ&AUrH. C
Preliminary Official Statement, with such changes as may be agreed to in writing by the
Underwriter. The District is in full compliance with each and every undertaking previously
entered into by it pursuant to the Rule.
POTENTIAL BID: The financial advisor may submit a bid or participate in a
bidding syndicate.
CUSIP: CUSIP numbers will be imprinted upon all Bonds of this issue at the
District's expense. Failure to print, or improperly imprinted numbers will not constitute basis for
the purchaser to refuse to accept delivery.
NO LITIGATION: At the time of payment for the delivery of said Bonds, the .
District will furnish the successful bidder a certificate that there is no litigation pending affecting
the validity of the Bonds.
FURTHER INFORMATION: Additional information regarding the District and
this sale may be obtained from Marty Wynne, Finance Director, Sunriver Library County Service
District, c% Deschutes County, 1164 N.W. Bond Street, Bend, Oregon 97701, telephone
(541) 388-6570.
Finance Director
Sunriver Library County Service District,
Deschutes County, Oregon
y
Page 6 - Exhibit A(1) (Official Notice of Bond Sale) J.VZR
Exhibit A(2)
Summary Notice of Bond Sale
$1,145,000
Sunriver Library County Service District
Deschutes County, Oregon
General Obligation Bonds
Series 1996
NOTICE IS HEREBY GIVEN that sealed bids for the captioned bonds (the
"Bonds") will be received on behalf of Sunriver Library County Service District, Deschutes
County, Oregon (the "District"), at the office of Preston Gates & Ellis, Lawyers, 3200 U.S.
Bancorp Tower, 111 S.W. Fifth Avenue, Portland, Oregon, 97204, until 10:00 o'clock a.m.
(Pacific Time) on Thursday,
October 17, 1996.
The Bonds will be dated October 1, 1996, will be in denominations of $5,000 each
or integral multiples thereof,. and will mature in varying amounts from June 1, 1997 to June 1,
2016 inclusive, and are callable on June 1, 2006 at par.
In the opinion of Preston Gates & Ellis, Bond Counsel, assuming compliance by
the District with its covenants relating to the tax-exempt status of the Bonds and except for
certain taxes on the book income of corporations, interest on the Bonds is excluded from gross
income for federal income taxation and is exempt for Oregon personal income taxation purposes.
The Bonds are not private activity bonds.
The successful bidder must certify the reoffering price as provided in the complete
Official Notice of Bond Sale for. the Bonds.
The District has designated the Bonds as "qualified tax-exempt obligations"
pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. y
Complete copies of the Official Notice of Bond Sale will be published in the Daily
Journal of Commerce on October 4, 1996 and in the Preliminary Official Statement for the
Bonds, which is available from -the District's financial advisor: Seattle -Northwest Securities
Corporation, 1000 S.W. Broadway, Suite 1800, Portland, Oregon 97205, telephone
(503) 275-8308; Attention: Cindy Duley.
Sunriver Library County Service District,
Deschutes County, Oregon
Page 1 - Exhibit A(2) (Summary Notice of Bond Sale) '•A`DIMUNRMYLUMMS-"unDOC
############################################################################################
############################################################################################
No. R-<<BondNumben>
Exhibit B
Form of Bond
United States of America
State of Oregon
County of Deschutes
Sunriver Library County Service District
General Obligation Bond
Series 1996
Dated Date: , 1996
Interest Rate Per Annum: « CouponRate>%
Maturity Date: June 1, «MaturityYeam
CUSIP Number:
Registered Owner: ---CEDE & CO. ----
Principal Amount:---«PrincipalAmtSpelled>> DOLLARS---
$<<PrincipalAmtNumber»
Sunriver Library County Service District, Deschutes County, Oregon (the "District"), for value
received, acknowledges itself indebted and hereby promises to pay to the Registered Owner hereof, or registered
assigns, the Principal Amount indicated above on the Maturity Date indicated above together with interest thereon
from the date hereof at the Interest Rate Per Annum indicated above, computed on the basis of a 360 -day year of
twelve 30 -day months. Interest is payable semiannually on the first day of June and the first day of December in
each year until maturity or prior redemption, commencing June 1, 1997. Payment of each installment of principal
or interest shall be made to the Registered Owner hereof whose name appears on the registration books of the
District maintained by the District's paying agent and registrar, which is currently First Trust National
Association, in Portland, Oregon (the "Registrar") as of the close of business on the fifteenth day of the calendar
month immediately preceding the applicable interest payment date. For so long as this bond is subject to a book -
entry -only system, principal and interest payments shall be payable to Cede & Co., as nominee of The Depository
Trust Company, or its registered assigns, on each payment date. Such payments shall be made payable to the order
of "Cede & Co."
This bond is one of a duly authorized series of bonds of the District aggregating $1,145,000 in
principal amount designated as General Obligation Bonds, Series 1996 (the "Bonds"). The Bonds are issued under
and pursuant to a Resolution of the District adopted on October 2, 1996 (the "Resolution"), and in full and strict
accordance and compliance with all of the provisions of the Constitution and Statutes of the State of Oregon.
The Bonds constitute valid and legally binding obligations of the District. The fullth and
credit of the District are pledged for the punctual payment of the principal of and interest on the Bon& The
District has pledged and is obligated by law to provide for the levy and collection annually of ad valorem taxes
without limitation as to rate or amount on all taxable property within the boundaries of the District to pay the
principal of and interest on the Bonds. The -Bonds do not constitute a debt or indebtedness of Deschutes County,
the State of Oregon, or any political subdivision thereof other than the District.
The Bonds are initially issued as a book -entry -only security issue with no certificates provided to
the Bondowners. Records of Bond ownership will be maintained by the Registrar and by The Depository Trust
Company and its participants.
Should the book -entry -only security system be discontinued, the Bonds shall be issued in the form
of registered Bonds without coupons in denominations of $5,000 or any integral multiple thereof. Such Bonds. may
be exchanged for Bonds of the same aggregate principal amount, interest rate and maturity date, but different
authorized denominations, as provided in the Resolution.
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Page 1 - Exhibit B (Form of Bond) J=lt
,W r- rr'r" C'%
The Bonds maturing in the years 1997 through 2006, inclusive, are not subject to optional
redemption prior to maturity. The Bonds maturing after June 1, 2006 are subject to redemption at the option of the
District, in whole or in part on any interest payment date, on and after June 1, 2006 at the price of par plus accrued
interest, if any, to the date of redemption.
Unless previously called under the above optional redemption provisions, the Term Bond
maturing on June 1, is subject to mandatory redemption by lot by the District on June 1 in each of the years
and in the principal amounts set forth below, any such redemption to be at a price of par plus accrued and unpaid
interest thereon to the date fixed for redemption. The particular Bonds to be redeemed on each such date shall be
selected by lot in such manner as the Registrar shall determine.
Year
Amount
Unless the book -entry -only system is discontinued, notice of any call for redemption shall be
given as required by the Letter of Representations to The Depository Trust Company, as referenced in the
Resolution. Interest on any Bond or Bonds so called for redemption shall cease on the redemption date designated
in the notice. The Registrar will notify The Depository Trust Company promptly of any Bonds called for
redemption. Notice of redemption shall be published as provided by law. If the book -entry -only system is
discontinued, notice of redemption shall be given by first-class mail, postage prepaid, not less than thirty days nor
more than sixty days prior to the date fixed for redemption to the Registered Owner of each Bond to be redeemed at
the address shown on the bond register; however, any failure to give notice shall not invalidate the redemption of
the Bonds.
Any transfer of this Bond must be registered, as provided in the Resolution, upon the bond
register kept for that purpose by the Registrar. This Bond may be registered only by -Surrendering it, together with
a written instrument of transfer which is satisfactory to the Registrar and which is executed by the registered owner
or his duly authorized attorney. Upon registration, a new registered Bond or Bonds, of the same series and
maturity and in the same aggregate principal amount, shall be issued to the transferee as provided in the
Resolution. The District and the Registrar may treat the person in whose name this Bond is registered on the bond
register as its absolute owner for all purposes, as provided in the Resolution.
Unless this Bond is presented by an authorized representative of The Depository Trust
Company to the District or the Registrar for registration of transfer, exchange or payment, and any Bond
issued is registered in the name of Cede & Co. or such other name as requested by an authorized
representative of The Depository Trust Company and any payment is made to Cede & Co., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL since the Registered Owner hereof, Cede & Co., has an interest herein.
IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all conditions, acts, and things
required to exist, to happen, and to be performed precedent to and in the issuance of this Bond have existed, have
happened, and have been performed in due time, form, and manner as required by the Constitution and Statutes of
the State of Oregon; that the issue of which this Bond is a part, and all other obligations of the District, are within
every debt limitation and other limit prescribed by such Constitution and Statutes; and that the District has
covenanted to levy a tax upon all taxable property within the District in an amount sufficient, with other available
funds, to pay when due the interest on and the principal of the Bonds.
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Page 2 - Exhibit B (Form of Bond) 7.1RMSUNRIV LLME&AUMDOC
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IN WITNESS WHEREOF, the Board of County Commissioners of Deschutes County, as the
governing body of the Sunriver Library County Service District, Deschutes County, Oregon, has caused this Bond
to be signed by facsimile signature of its Chair and attested by facsimile signature of its Finance Director, as of the
date indicated above.
Sunriver Library County Service District,
Deschutes County, Oregon
Nancy Pope Schlangen, Chair
Marty Wynne, Finance Director
THIS BOND SHALL NOT BE VALID UNLESS PROPERLY AUTHENTICATED BY THE
REGISTRAR IN THE SPACE INDICATED BELOW.
CERTIFICATE OF AUTHENTICATION
This is one of the $1, 1450,000 aggregate principal amount of Sunriver Library County Service
District, Deschutes County, Oregon General Obligation Bonds, Series 1996, issued pursuant to the Resolution
described herein.
Dated: .1996.
First Trust National Association, Portland, Oregon, as Registrar
VA
Authorized Officer
Page 3 - Exhibit B (Form of Bond) '-�R
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
(Please insert social security or other
identifying number of assignee)
this Bond and does hereby irrevocably constitute and appoint
as attorney to transfer this Bond on the books kept for registration thereof with the full power of substitution in the
premises.
Dated:
NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears
upon the face of this Bond in every particular, without alteration or enlargement or any change whatever.
NOTICE: Signature(s) must be guaranteed by a member of
the New York Stock Exchange or a commercial bank or
trust company
Signature Guaranteed
(Bank, Trust Company or Brokerage Firm)
Authorized Officer
The following abbreviations, when used in the inscription on the face of this Bond, shall be
construed as though they were written out in full according to.applicable laws or regulations.
TEN COM -- tenants in common
TEN ENT -- as tenants by the entireties
JT TEN -- as joint tenants with right of survivorship
and not as tenants in common
OREGON CUSTODIANS use the following
CUST UL OREG MIN
as custodian for (name of minor)
OR UNIF TRANS MIN ACT
under the Oregon Uniform Transfer to Minors Act
IN
Additional abbreviations may also be used though not in the list above.
Page 4 - Exhibit B (Form of Bond) JARDM""`u"ER.LIMEs-w`JMMOC